Buying power

Buying power is the position value your free margin can open at the allowed leverage: ₹20,000 at 10x is ₹2,00,000. It shrinks when you open a position and again as it loses; it is the available-to-trade figure on the order panel, and one trade shows it move.

Go on

In the help centreSee how leverage and margin work on Mochatrade
  • Leverage in tradingLeverage is controlling a position bigger than the money you put up. At 5x, ₹10,000 of margin controls ₹50,000, so a…
  • Liquidation / forced square-offLiquidation, or forced square-off, is the venue closing a leveraged position because the margin can no longer cover…
  • Margin tradingMargin trading is taking a position larger than your deposit, the margin. A US broker lends you cash at interest; on a…
  • Position sizingPosition sizing is deciding how much to trade: the rupees you are willing to lose divided by the distance from entry…
  • Isolated marginIsolated margin ties a fixed amount of margin to one position, so that position can only lose what you gave it and the…
  • Liquidation priceThe liquidation price is where the venue closes your leveraged position, computed from entry, leverage and margin…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

Where it comes up